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credit rating - is it really so important?

People are obsessed with their credit rating. If I already own my own home, and don't plan on using credit to fund my life (I always plan on having the money on hand for large purchases) is there a reason why I should give a shit what my credit rating is?

I've wondered about this as there seems to be an entire industry built around consumers fear of their credit ratings dipping.

We got denied an awesome apartment when my roomie failed the credit check. My rating was near perfect, and my salary was enough to cover the rent should my roomie not even give me 1$ one month - but the failure of the credit check on his part gave her an excuse and she used it.

People are obsessed with their credit rating. If I already own my own home, and don't plan on using credit to fund my life (I always plan on having the money on hand for large purchases) is there a reason why I should give a shit what my credit rating is?

I've wondered about this as there seems to be an entire industry built around consumers fear of their credit ratings dipping.

Any thoughts?

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- some jobs require credit checks.
- if you're going to co-sign for your kid's loan one day
- if you ever need a loan (don't just assume that life will be predictable)

there are probably many more unforseen events that might require good credit

We got denied an awesome apartment when my roomie failed the credit check. My rating was near perfect, and my salary was enough to cover the rent should my roomie not even give me 1$ one month - but the failure of the credit check on his part gave her an excuse and she used it.

And thats probably one of the milder penalties of having bad credit.

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Weird, I've never had a credit check (or any kind of check really) from an apartment rental. Is that a new thing?

credit score is directly indicative of how one handles the credit they do have. It reflects how much credit you have at your disposal, and how you handle that credit (carrying large balances for an extended period of time, late payments etc). So yes, it is important if you plan on borrowing. Which most people at some point need.

Insurance companies are now starting to using credit scores to determine premium rates. They claim that people with lower credit scores pose higher risks for stuff like house thefts, car accidents, etc.

Just like everyone else is saying matinee a healthy credit rating as it will make your life easier when you need that loan to improve your life. I don't think everyone does the credit check when you rent an apartment, but it would be a smart idea if you're bringing in someone you don't know. for me the big reason why I would want a good credit rating is to acquire a loan. Owning a business you have no choice but to get a loan to get ahead.

it's important but not the be all and end all like people make it out to me.

Insurers are using this to determine if they will insure property risks, however it is still illegal for companies to use it for auto risks. However if you have your home and auto together then it really is more available than it should be on the auto policy side.

I have fantastic credit in the high 800's, where most people get burned is having multiple credit cards like Sear, Bay, Zeller, HD, Visa, MC etc etc etc .
this actually hurts your credit score because you appear over-extended Even if they have $0 balances.

The best thing to do if you are in trouble or getting ready to make a big purchase. is payoff all the small credit, keep 1 visa and asked each company to report the closure of the card to the credit bureaus.

it's important but not the be all and end all like people make it out to me.

Insurers are using this to determine if they will insure property risks, however it is still illegal for companies to use it for auto risks. However if you have your home and auto together then it really is more available than it should be on the auto policy side.

I have fantastic credit in the high 800's, where most people get burned is having multiple credit cards like Sear, Bay, Zeller, HD, Visa, MC etc etc etc .
this actually hurts your credit score because you appear over-extended Even if they have $0 balances.

The best thing to do if you are in trouble or getting ready to make a big purchase. is payoff all the small credit, keep 1 visa and asked each company to report the closure of the card to the credit bureaus.

As a landlord, I am finally starting to run credit checks on potential applicants after a tenant that looked great on paper (great references, too) declared bankruptcy and left me hanging with six months left on a one-year lease. A credit check would have given me a headsup. Mind you, there are also tenants who leave me hanging for completely different reasons that a credit check would never indicate. But as someone already stated, a decent credit score and credit history is pretty indicative of how well someone manages their finances in general and whether he/she is going to be able to pay rent on time.

Also, as a landlord, I report tenant rent payments to a credit reporting agency, so renting from me and paying rent on time can actually help to improve your score!

I just took on some tenants who are clearly re-building their credit after some reckless spending in their "glory days" so wish me luck.